As with most states, California state auto insurance law requires all drivers to carry 3 fundamental liability components.

Bodily Injury Liability (BIL) of $ 15,000 per person injured

Total Bodily Injury Liability of $ 30,000 / accident

Property Damage Liability (PDL) of $ 15,000 per accident

The insurance industry refers to this as 15/30/15.

However, to rely solely on this amount of coverage, would be foolish. Multiple car accidents and ambulance chasers (i.e. lawyers) can drive the cost of a car accident to six figures and well beyond. If you’re to blame and you’ve opted for the minimums, you personally, are now liable for the shortfall. As a result, you’ll need to sell your home, empty your savings account and possibly more. How does that sound to you?

From experience, I recommend no less than 100k/300k/100k and more, if you are on the road frequently…particularly in the abundant elite communities of Californ-i-a. Spending a few extra dollars here is money well spent.

So far, only liability coverage has been discussed…and that does not apply to damages to your vehicle or injuries to you. The remainder of what we will discuss is not mandatory under California law.

First, let’s take care of you. Personal Injury Protection (PIP) pays for injury to you and your passengers no matter who was at fault. I suggest PIP coverage of no less than $ 100,000.

Next, your vehicle. To most folks, full coverage means the combination of collision and comprehensive.

The purpose of collision insurance is two-fold; to cover the cost of the repair to your damaged vehicle or if “totaled” to make a cash settlement. You are liable for a predetermined “deductible” amount and the insurer pays the balance.

Comprehensive insurance protects your vehicle against theft & vandalism and damages from fire & smoke, animal impact and Mother Nature.

Another valuable coverage — protection from uninsured drivers. It’s not your fault, but he won’t pay. Here’s where your uninsured/underinsured driver coverage comes to the rescue.

Southern California auto insurance may allow “pay by the mile” plan.

CA’s Insurance Commissioners have tabled a plan allowing insurance companies to charge based on actual miles driven. Similar to purchasing prepaid minutes for a mobile phone…the consumer would pay up-front for a fixed number of miles to be driven in a limited period of time. A device installed in the automobile will allow the insurance company to monitor a car’s mileage and charge appropriately.

Consumer advocates are in favor of the proposal because charging for miles driven (as opposed to an insurance company’s projection) should mean savings to low mileage motorists.

And some say more importantly, it will incenticize drivers to stay off our roads. Environmentalists say this type of car insurance in La Mesa will encourage motorists to drive less…meaning lower fuel consumption, reduced pollution & less road congestion.

The plan looks like an all-out winner to me.